AI is set to be the next big thing in banking. It’s only a matter of time before it becomes a part of our regular banking routine where we experience less system hiccups and receive more useful recommendations that make doing transactions easier.
If you’re curious about what AI can do, keep reading as we discuss the ways it’s improving banking online.
1. Better Customer Service
Customer service should be a priority no matter what niche in business you are in. With banking, it’s especially important since you are handling people’s money. More than anything, people want to know that their account is secure and that measures are being taken to ensure it stays that way.
With AI, customers not only get a seamless experience, they also get relevant information and suggestions in line with their needs. It can even be integrated with wealth management services where customers can analyze trends in the market and receive suggestions that meet their best interest.
2. Less Human Workload
AI is able to perform hundreds of tasks in less time than any other human can. So if you have lots of accounting work, fret not because AI is there to handle and deliver the results for you. This reduced workload allows human resources in your organization to work on more thoughtful tasks that require higher thinking.
3. Prevent Fraud and Criminals
Fraud is one of the worst enemies of banking. As technology gets more sophisticated, so are hackers. They have a wide selection of tools they use to get into bank accounts online. This in combination with social engineering can let them into people’s financial information without holding the bank liable. That’s very dangerous since it’s the customer who covers the loss, not the institution.
With AI, you can prevent fraud in its tracks. AI is able to detect patterns in cash flows based on the customer’s history and have a suspicious transaction be verified by the actual owner of the account first before it goes through.
And it’s not just accounts of private individuals we’re talking about. AI can also detect money-laundering happening in seemingly small businesses. AI is a smart technology and it doesn’t just analyze present data. It learns from past information and uses that to make better decisions in the future. It’s constantly learning so it’s going to be pretty hard for criminals to get away with dirty money.
4. More Secure Verification
Customers need to be able to verify themselves before they can make an online transaction. This is why KYC compliance is very important with banking. Without customer data to base their identity upon it, it’s easy for hackers to compromise the account.
With AI however, identity verification becomes more robust as customers don’t just use a password. They also use their unique human features to authenticate themselves. And more than that, AI will look into past customer behaviour to see whether the transaction they’re making it something they would normally do. It’s these little nuances like these that AI can pick up on which makes online banking transactions not only convenient but also ultra secure.
5. Better Compliance to Regulations
Finance is one of the most highly regulated industries in the industry. Because of this, banks have to keep up with a number of rules to ensure they aren’t stepping over the line. This can include upholding customer privacy, monitoring international transfers, avoiding risky customer profiles.
Using AI, banks can better comply with these regulations by tracking customer behavior and auditing information. This saves banks from the high cost of paying human resources to check regulatory compliance. And because AI is less prone to error, banks are able to avoid very expensive risks.
What are your thoughts of AI being used in online banking? Share your thoughts in the comments below.
